News
High debt, low growth conundrum gets IMF staff treatment
Paper says countries aiming to deleverage should keep monetary policy loose, but warns of attempts to tackle it through inflation; says conditions for fiscal consolidation have changed post-crisis
Higher interest rates no ‘immediate threat' to UK banks, says FPC
Financial Policy Committee still warns firms are not taking sufficient account of potential stresses and that borrowers would be exposed to higher interest rates were debt levels to rise further
HKMA’s Yue focuses on renminbi as China liberalises capital markets
Deputy chief executive Eddie Yue believes the renminbi will be ‘crucial’ in managing impact of China’s capital account liberalisation on global markets; hosts forum with UK government official
Basel update shows biggest banks' CET1 position improving
Latest periodical review of progress towards Basel III standards shows the world's biggest banks are closing the gap on core Tier I capital requirements; US issues guidelines for Basel compliance
RBNZ institutional set-up makes forward guidance easier, says Grimes
Former chair of Reserve Bank of New Zealand’s board of directors says the concentration of power in the hands of the central bank’s governor makes forward guidance easier and policy-making clearer
Hong Kong and Australia see risks in low interest rates and Chinese NPLs
Impact of any shift in the yield curve on banks' balance sheets ‘may not be small', according to HKMA; RBA urges lenders to maintain prudent risk appetite as rates remain low
ECB’s Russo: indirect clearing model needs work
Head of payments and market infrastructure at the ECB calls for greater clarity from regulators on the capital treatment of indirect clearing
ECB appoints Oliver Wyman to conduct ‘comprehensive' eurozone bank review
European Central Bank appoints the same consultancy firm as conducted Spain's banking stress tests and is doing the same for Slovenia; more details of the comprehensive review to follow soon
Central banks struggle to publicise new banknotes
Netherlands Bank finds that two-thirds of the Dutch population do not check the authenticity of their banknotes, which adds to the difficulty of communicating changes in their security features
BoE MPC members scramble to reaffirm low rates
Ben Broadbent, David Miles and Paul Tucker deliver speeches stressing their commitment to forward guidance and assuring markets the committee is ‘not in a rush’ to tighten policy
Politically-aligned governors more likely to 'survive', research finds
Paper unearths evidence that central bank governors with the same political leanings as the government in power last significantly longer in their roles
Buffett’s ‘greatest hedge fund’ claim puts spotlight on the Fed
Warren Buffett's claim the Fed is ‘the greatest hedge fund in history’ fuels bloated balance sheet and politicisation debate; Fed veteran Gary Stern says 'sage of Omaha’s' comments are ‘misguided’
NY Fed trials new reverse repo facility
Federal Reserve Bank of New York tests new overnight reverse repo facility; William Dudley believes it will bolster the Fed’s control over short-term money market rates
Somalia appoints first female governor to scandal-hit central bank
Central Bank of Somalia to be led by female governor for first time; predecessor resigned after UN report placed central bank at the heart of a 'systematic misappropriation' of public funds
BoE executive director departs for private sector
Paul Sharma quits Prudential Regulation Authority after 20 years as a regulator, to move to consultancy Alvarez & Marsal; marks second high-level departure from PRA in the past week
CLS launches settlement for same-day USD/CAD trades
Settlement risk mitigation firm is due to launch a new settlement session this week for trades settled on a same-day basis
Rajan unveils rate hike - and cut - as QE lingers on
RBI raises repo rate but cuts MSF rate as focus shifts from defending the rupee to keeping inflation in check; Rajan warns Fed taper ‘only postponed'
Emerging market volatility not a sign of crisis, says Malaysian supervisor
Emerging markets are much better prepared to deal with foreign investment outflows than in the past, says Securities Commission Malaysia chairman
IMF's Lagarde backs Fed over asset purchases
The IMF’s managing director believes the Fed should take a 'gradual' approach to reversing its asset purchases and rate cuts; stresses the importance of unemployment figures
Euro crisis will leave Greece stronger, says Herbert Grubel
Membership of a currency union initially failed to force Greece to reform its economy but the country is now set to emerge from the crisis unshackled from former vested interests; the case of Greece may offer lessons for other democracies
RBNZ closing loan valuation loopholes
Reserve Bank of New Zealand proposes stricter rules on how banks value housing loans and residential properties to prevent them undermining new macro-prudential policy
SNB reiterates commitment to franc price ceiling and zero interest rate
Swiss National Bank is ready to buy unlimited quantities of foreign exchange and take other measures if required to hold the franc down; inflation should turn positive next year, it says
Scandinavians open macro-pru toolbox to cool overheated housing markets
Rising property prices, increasing household debt and towering banking sectors are pushing Norway, Sweden, and Denmark to consider unconventional measures to pre-empt a crash
Bernanke defends Fed communication after QE surprise
Ben Bernanke says FOMC communication in June was justified as Fed shocks markets by ploughing on with asset purchases; economists question why markets were focused on September meeting